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IMF's Zhu: Banks are not out of the woods yet

May 28 - Ultra-loose monetary policy has created a new set of risks for the financial sector, says IMF Deputy Managing Director Min Zhu.

TRANSCRIPT +

So we're just finished a fascinating panel called what's up with -- banks I -- my panelists was suddenly in zoo. The deputy yacht managing director of the IMAX I -- it was a lively discussion you had a lot to say I'm very glad I'm. Is the IMF moral less worried about the state of the banking industry now but it was three or four years ago it. A lot of progress has been made into the drug trade for -- walk income before real. Operations. But all the risk on downsize but remains a new risk upon our -- Although all receives fuel when knocked out of the woods yet it's too long -- -- would you. Background across the question again are you less so more worried than you have three or four years ago. We always concerns the global financial risk of which is sold Monday so Wear different clothes and monitor the practice that. -- -- -- -- You've warned about what happens when central bank's exit QE. How difficult is that moment gonna be for the banks and for bank customers. Of the there are few things happen on the front and bounces today owned. To SSR's. Sustainable this its citizens have been cool with a sort of on the market so it's very much into -- a sensitive. On the guest artists do on the sense of sense on the whole setting aside please also sensitive to market adjustments. Until the people that Klein. The public. Total increase -- more than one -- The -- criticized -- -- -- also -- interest sensitive. So if that -- its parent would churn through the fountains at the imbalances you also. Switched out like you know of course because inflation is likely to rise interest rates and like to go off. Let it come on my table each of this forum on the low interest that creates. That -- -- with -- clear that you was already. So what is that it is column of gradually recovering. Still have a really large -- is appropriate. -- -- officials are they need to be careful little replica that. Is it a pattern for an hour. I think the -- to decide issues on the central banks are they beautiful affirmed the communications and approved by the -- until the law who is from. Because today you compare -- say ten to fiasco. Before you have only one. Instruments which is interest rates yeah. But today you for the purchase up to SS who have looked at pulls its chance you have the stall when the goal you have of Google's coaches that they have into the you'll still wind differential as a transparency is awfully important. But on the other side of banking sector and beautiful example of that -- out also to see what it. Told you about European banking union how you see progress -- of the Euro zone crisis. Be resolved without a fully -- banking unit. That the yield team unity -- -- -- -- you need to thank you and is currently. On because that's not very solid and those -- support our currency. On -- associations that you just said that the single -- supervisor about it yet. -- -- Before you -- the super resolution mechanism but also you need to back cut you need to yes and become a whole lot of send me. Fiscal mechanism to support -- -- -- we've got a long long way to go and everybody got along with the goal on the -- that look very good debating discussions and -- Pall is organized and wound their way the key issues implementation and implementation are you optimistic. I was so far into the policy agenda discussing some possible street I think that's good I'm I'm happy but all implementation. I think was what today. -- -- thank you very much indeed talking -- Reuters today did you finally president thank you to being on the panel and playing such a key role. I mean zoo deputy managing director sat out the IMF's. I'm Axl -- and this is righteous it.

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